AUSTRAC Cracks Down on Crypto Exchanges
The Australian Transaction Reports and Analysis Centre , AUSTRAC, has issued a stern warning to cryptocurrency exchanges and remittance services, emphasizing the mandatory adherence to anti-money laundering (AML) regulations under threat of penalties.
In a public statement released on their official platform, AUSTRAC disclosed that they are currently scrutinizing over 50 entities and have recently enforced actions against 13 providers. Brendan Thomas, CEO of AUSTRAC, stated that registrations for nine providers were either revoked, suspended, or denied renewal in late 2023.
This decisive action followed failures to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act. Thomas elaborated, saying:
“Furthermore, two providers have had conditions imposed on their registration and are now under formal notice – non-compliance with these conditions could lead to registration suspension or cancellation.”
This recent crackdown follows a year-long investigation targeting firms potentially neglecting to report or underreporting suspicious transactions. AUSTRAC has placed restrictions on the registrations of two providers and cautioned that further breaches could result in termination.
Several executives from companies including Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, and B-Paywize Pty Ltd, are facing criminal charges or legal proceedings. Conversely, Jinte Net Blockchain Pty Ltd and DIGI-SEND E-Money Pty Ltd were identified as operating businesses that no longer necessitate registration.
After entering bankruptcy, FTX Express and Zipmex Australia, both struggling exchanges, have been removed from the Digital Currency Exchange Register. AUSTRAC highlights that a substantial number of financial crime investigations are impeded by cryptocurrency exchanges’ insufficient reporting of suspicious activities.
“Businesses working in this space who are not meeting their obligations can expect to hear from us” Thomas cautioned.
Since January, AUSTRAC has dispatched compliance reminders to 106 companies. Supported by its dedicated crypto taskforce, the regulator has committed to actively overseeing the 417 cryptocurrency exchanges currently registered and regulated within Australia.
